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Technology Stocks : Loral Space & Communications

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To: Don Limb who started this subject	7/28/2004 11:06:44 AM
From: ebg51	Read Replies (1) of 10852

Reuters - Judge denies Loral shareholder request Tuesday July 27, 3:01 pm ET By Dane Hamilton NEW YORK, July 27 (Reuters) - A U.S. bankruptcy judge on Tuesday rejected a request by shareholders of bankrupt satellite operator Loral Space & Communications Ltd. (OTC BB:LRLSQ.OB - News) to appoint an equity committee at company expense to seek a recovery after the bankruptcy. ADVERTISEMENT After a four-hour hearing in Manhattan, U.S. Bankruptcy Judge Robert Drain turned down requests by three shareholder groups to form a committee, saying the groups hadn't met the legal requirements. An equity committee would have allowed shareholders to hire lawyers and investment advisors at company expense to argue they should have some post-bankruptcy value for their shares, which are now trading at a fraction of their former value. Loral filed for bankruptcy a year ago, listing assets of $2.6 billion but debt of $3 billion. It stated this month that common and preferred shareholders would get no recovery under a plan of reorganization it is devising. Shareholders including Jeffrey Swarts argued that Loral had improperly discounted the value of its assets including orbital slots, patents, and others in an effort to deny any post-bankruptcy gains for shareholders. But they argued that they needed to hire professional advisors to press their claims. "It's a David vs. Goliath kind of thing," said Swarts after the judge's decision. He declined to say whether he could afford to continue to press his claims. "There is just no representation for equity here," he said. But Judge Drain said while he sympathized with the shareholders' claims, he believed they could pursue other legal remedies to challenge the company's reorganization plan, including opposing it at the company's upcoming confirmation hearing. The company has said it expects to file a plan of reorganization by the end of August. Judge Drain granted the company's request for a 30-day extension to file the

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